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Check My Work eBook Project Cash Flow The financial staff of Cairn Communications has identified the following information fo

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Answer #1

Operating cash flow in year 1 = (Projected sales – Operating costs – Depreciation)(1-Tax rate) + Depreciation (since non cash expense)

= (22,000,000-7,000,000-6,000,000)(1-25%) + 6,000,000

= $12,750,000

> I can confirm that this is correct.

Frank Abagnale Sun, Dec 5, 2021 7:35 PM

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